The gaming industry in the Middle East and North Africa (MENA) region has experienced remarkable growth in recent years, transforming from a niche hobby into a mainstream cultural force. This growth is fuelled by a young population, increasing smartphone penetration, and supportive government initiatives to diversify regional economies.
Spending in the gaming sector across the MENA region is projected to reach USD 2.87 billion by 2028, highlighting not only the financial opportunities available but also the evolving entertainment culture in these nations.
Driving Forces Behind The Boom
The MENA region’s gaming market is expanding faster than many other regions globally, driven by several key factors. The region has a young and tech-savvy population, with more than 60% of residents below the age of 30 who are naturally inclined towards digital entertainment.
The rise of mobile gaming is another significant driver, with smartphone penetration rates in countries like Saudi Arabia, the UAE, and Egypt allowing gaming to become accessible to a broader audience. According to a report by Newzoo, mobile gaming accounts for approximately 58% of the total gaming market in MENA.
Government support is also playing a pivotal role. Countries in the Gulf Cooperation Council (GCC), particularly Saudi Arabia and the UAE, invest heavily in gaming and esports sectors to diversify their economies beyond oil.
Saudi Arabia’s “Vision 2030” economic diversification agenda, for example, focuses on bolstering the entertainment sector, with initiatives like the Saudi Arabian Public Investment Fund (PIF) investing in international gaming companies to establish the country as a leader in gaming.
The gaming market is also experiencing growth due to cultural acceptance and localisation. The introduction of Arabic-language games, culturally relevant content, and the availability of high-speed internet infrastructure have helped gaming become a mainstream cultural phenomenon. Saudi Arabia is currently the largest gaming market in MENA, with a thriving community and high spending power. The UAE is a regional hub for gaming events, while Egypt’s rapidly expanding market is largely focused on mobile gaming.
The Rise Of Esports In MENA
Esports has emerged as another key growth area in the MENA region, transforming gaming into a competitive spectacle. Saudi Arabia is a trailblazer in esports, investing millions to develop world-class facilities and hosting major tournaments such as the Gamers8 event in Riyadh, which boasts one of the highest prize pools in esports history.
MENA-based esports teams like Team Falcons and NASR Esports have also gained global recognition, with local influencers drawing millions of followers on platforms like YouTube and Twitch.
Government initiatives have further nurtured esports, with Saudi Arabia aiming to create 39,000 jobs in the gaming industry by 2030, while the UAE hosts events like the Abu Dhabi Gaming Festival to mainstream esports culture. These investments are helping to position the MENA region as a new hotspot for competitive gaming.
Opportunities And Challenges
While the gaming industry in the MENA region shows significant promise, it also faces various challenges. One of the key challenges is internet connectivity in non-GCC countries.
While nations like Saudi Arabia and the UAE have advanced digital infrastructure, other countries lag, particularly in rural areas. However, this presents opportunities for telecom companies to expand their services and tap into new segments of the gaming population.
The regulatory environment is also evolving, with gaming companies needing to navigate different standards and restrictions in each country. Some areas have strict content regulations that limit the availability of certain games, but the push for economic diversification is prompting governments to revisit and liberalise gaming regulations.
Additionally, language and cultural barriers require companies to focus on localisation, which offers a significant opportunity to create content that resonates with local audiences.
Prospects For The Industry
The projection that the MENA gaming industry’s spending will reach USD 2.87 billion by 2028 is based on analyses from industry experts and research organisations. For instance, Niko Partners, a market research firm specialising in video games, forecasts that the Asia and MENA games market will generate nearly USD 100 billion by 2028, with significant contributions from the MENA region.
Similarly, Statista’s market forecast indicates that revenue in the MENA games market is expected to reach $15.25 billion in 2024, with an annual growth rate leading to $22.28 billion by 2029.
These projections underscore the rapid expansion and potential of the gaming sector in the MENA region. This growth will be fuelled by increased investment from venture capitalists and government funds pouring into gaming startups and esports initiatives. Such investments will help boost local game development, talent acquisition, and industry ecosystem.
There is also an increasing focus on nurturing local talent, with regional game development studios and incubators like the UAE’s Twofour54 and Saudi Arabia’s Manga Productions fostering local content that appeals to MENA gamers.
Emerging technologies, such as Virtual Reality (VR) and Augmented Reality (AR), are expected to find a receptive audience in the region. As internet speeds improve and 5G becomes widespread, immersive gaming experiences will become more prevalent, attracting new gamers and enhancing user experiences.
The MENA gaming market represents one of the most dynamic and rapidly expanding sectors in the global entertainment landscape. A young population, increased smartphone use, supportive government policies, and a burgeoning esports ecosystem have laid the foundation for sustained growth.
With spending projected to reach USD 2.87 billion by 2028, the MENA region offers vast opportunities for developers, investors, and stakeholders looking to tap into one of the world’s most promising gaming markets.
As the gaming industry continues to evolve, the focus will likely shift towards creating more localised content, expanding internet infrastructure, and supporting the growth of esports, all of which promise to shape the future of gaming in the Middle East and North Africa.